1. Field of the Invention
This invention generally relates to risk analysis. More specifically, this invention relates to a system and method for analyzing the risks associated with implementing telecommunication networks of varying network element sizes.
2. Related Art
A common issue facing large telecommunications carriers involves determining the optimum size for telecommunications network elements. Due to economies of scale and the development of new technologies, many carriers utilize infrastructure components of ever increasing size. This results in concentrating larger amounts of customer traffic onto fewer resources. For examples, telecommunication carriers utilize larger circuit switches and cross-connects and fibers with greater capacity. However, the concentration of larger amounts of traffic on fewer resources means that the failure of such a resource can have a large—even catastrophic—impact.
Thus, a problem facing telecommunications carriers is determining the size at which the risks associated with larger network elements overtake the cost savings provided by larger network elements. A need exists for a model that analyzes this issue.